Given the general condition of much of the PPP estate, many projects have seen prolonged component life through strong maintenance programmes. This means that as they approach handback many of the larger building systems and components such as heat and power sources have not been subject to lifecycle replacement. Depending on the handback provisions within the Project Agreement, there is a need to replace these major components prior to handback.
The handback process presents both a risk and an opportunity to procuring Authorities' NZ ambitions. If handback is delivered in strict adherence to the Project Agreement, then building components and systems will be replaced on a like for like basis. Given the period when, in particular, many early PPP projects were developed, this will mean a continuation of fossil fuel-based solutions and less efficient systems.
As noted above, the handback process provides a significant opportunity for procuring Authorities to work in partnership with Project Cos and their FM providers to identify where handback offers opportunities to meet NZ ambitions.
This could be through delivery of an alternative product type that may only require a variation of specification or through agreement to enhance the proposed handback works to a NZ option with an Authority meeting the cost differential. Either option is still beneficial to the Authority as it is likely ultimately to be cheaper to adopt these types of approach than replace systems at full cost after the end of the contract term.
As noted, where projects have had robust maintenance regimes in place, many larger system components will likely require replacement within the extended handback period (five years pre handback), where this is applicable, and this will include components such as boilers, combined heat and power units and air handling units. These are significant components and are highly linked to energy consumption and energy source and subsequently carbon emissions generated. NZ technologies that replace these types of components are unlikely to be straightforward like for like replacements.